Advantage Marketing Systems, Inc.
Advantage Marketing Systems, Inc. markets a product line consisting of approximately 103 products in three categories; weight management, dietary supplement and personal care products through a network marketing organization in which independent distributors purchase products for resale to retail customers as well as for their own personal use.
AMS follows growth strategy through acquiring other companies with compatible product line. The principle objective of the company’s acquisition strategy is to acquire other network marketing organizations that can be combined with the company’s net work marketing organization, resulting in increased sales volume with minimal additional administrative costs.
We recommend the company to follow its acquisition strategy in order to increase its sales. We also recommend the company to putt more effort in promoting its product line in order to decrease the risk of dependence on AM-300. We also believe that the creation of a research department is a necessity for the company in order to expand its product line and follow consumers preferences changes.
Introduction
The company history
Advantage Marketing Systems, Inc. was founded in 1988 by C.E.O. John Hail after his company T.V.C Marketing completed a five year marketing contract with Pre-Paid.
AMS markets a product line consisting of approximately 100 products in three categories:
· Weight management (8).
· Dietary supplement (28).
· Personal care products (63).
These products are marketed through a network marketing organization where independent distributors purchase products for resale not only for their own personal use, but also retail customers.
Based in Oklahoma ...
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... and products. This will allow the company to increase its product line in order to respond to the change in consumer preferences, and also gain the right of patent.
Projected growth
Based on the implementation of these recommendations, AMS should see its sales grow to reach $100 Million in 2002. Costs will initially increase due to the added research, development, and promotions efforts associated with the new Strategy. The acquisition of Universal Nutrition Corporation will help the company achieve its objective of $100 Million in 2002. We also believe that such kind of acquisitions will also help the company increase its net income. We predict then, that AMS will acquire at least two more companies in the next five years, this will help the company expand it sells to reach $ 180 million in 2004 with an income of $ 13 million dollars. (See Appendix 4&5).
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill Company.
Ferrell, O. C., & Hartline, M. (2012). Marketing strategy, text and cases (6th ed.). Stamford, CT:
products, can go a long way to influencing businesses to initiate a change in their operation
O’Neill likewise mentioned the use of franchising to increase the scope of reach of the company. In my opinion this strategy can be very effective in reaching new market without spending much. By allowing franchises, the company is able to cater to wider market, ensuring the growth of the company in the long run.
The company should acquire more companies in the Asian markets, like India, Pakistan and China and expand in these areas because these markets are still developing. The company has a good chance of growth because the labor of these countries is very cheap. The company can focus on all the strategies mentioned in the strategy alternative part because they can be adopted at the same time. Two of the strategies are related to the marketing campaign and positioning of the company, while the last one focuses on the expansion which should be the global agenda of the company.
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Amway's marketing structure is based on personal connections in order to recruit new salespeople, called distributors. These are independent agents who rely on close connections such as family, friends and co-workers as customers. To move up the hierarchical ladder, a successful agent will sell more and more products through this network of people. The circle gets bigger and bigger as one distributor is suppose to recruit others to join Amway. The pyramid and recruiting method which Amway distributors use has been branded for cultic recruitment.
This report will analyse J.H Whittaker and Sons internal and external business environment. In doing this, potential market segments will be identified with the intention of guiding Whittaker’s as to how they should communicate the benefits of their products to potential customers. Limitations occur in regards to the data collected throughout the report, as some of the most recent figures to be found on the Internet are from 2010. Therefore we must assume that these figures are still accurate to present day.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.
In this type of distribution channel the manufacturer can directly sell their products to the end customer. There is no other intermediaries in this distribution
The company should expand into new markets. For example, during the low seasons, he can expand into new locations, countries with its current product, and service offerings
Motive: To have a fresh and young look and to get rid of any unwanted
Marketing is a fundamental aspect of all businesses, whether they are set out to make a profit, or charitable organisations - they will have to carry out marketing research of some description. It has been described as being, “the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” (Chartered Institute of Marketing) This essay will explore the role of marketing in a marketing oriented business and different aspects of the external environment that a smartphone company should be aware of. The points raised throughout will be supported using relevant journals, textbooks and newspaper articles.